Celebrating 25 Years of Impact.

Celebrating
25 Years of Impact.
25
1987-2012
Annual Report
Special Edition
25th Anniversary
Supplement
CI
handinhand
Our Vision
We imagine a healthy, prosperous world in which
societies are forever committed to caring for and
valuing nature, our global biodiversity, for the
long-term benefit of people and all life on Earth.
Our Mission
Building upon a strong foundation of science,
partnership and field demonstration, CI empowers
societies to responsibly and sustainably care for
nature, our global biodiversity, for the
well-being of humanity.
CI | 2011 Annual Report | 1
contents
2 | 2011 Annual Report | CI
04 06
Leadership Message
10
Board of Directors
Financials
12
Chairman’s Council
14
Senior Leadership
CI | 2011 Annual Report | 3
Leadership Message
This year, Conservation International (CI) is
celebrating 25 years of protecting nature for the
well-being of humanity. And as we reflect now on
the many conservation milestones and victories we
have realized, it is gratifying to see just how far CI
has come—and humbling to consider just how far
we have yet to go. But as we stand on the verge of
our next quarter-century, we couldn’t be more
encouraged by the progress we have made—and
the difference we are making.
2012handinhand
When CI was founded on a snowy night at
Washington, D.C.’s historic Tabard Inn in 1987, our
success was anything but assured. The small band
of dedicated conservationists that gathered that
evening had little more than a shared belief that the
time for a new approach had come—that science,
economics and local communities all have vital roles
to play in international conservation.
4 | 2011 Annual Report | CI
In our first year, we broke new ground by signing the
first-ever debt-for-nature swap agreement with the
government of Bolivia, which was—just the first of many
solutions we would pioneer in the years to come. Since
then, we have continued to innovate and scale up our
efforts at a rapid pace. And through it all, we have stayed
true to the ideals we’ve held since the beginning—our
foundation of science, partnership and field demonstration
remains as strong as ever.
And while our original mission was to protect biodiversity
around the world, the seeds of our renewed mission—
protecting that biodiversity for the well-being of humanity—
were there all along. They were present in our early
efforts and enterprises that were grounded by a simple
understanding: In order for conservation to succeed, it must
reconcile both the needs of the planet and its people, and it
must secure both life and livelihoods.
Today, milestone by milestone, we are witnessing this
vision coming to fruition in ways and in proportions we
once only could have imagined.
We see it in our work on the Pacific Oceanscape, the
most ambitious marine conservation in history, where
the leaders of 16 island nations are bringing cooperative
management and protection to 10 percent of the planet’s
ocean surface—an area larger than the surface of the
moon. These efforts aim to increase fish stocks, empower
community conservation and promote effective adaptation
to the impacts of climate change.
We see it on the African continent, where our pilot project
with the Bill & Melinda Gates Foundation has given rise
to a renewed commitment and funding to create Vital
Signs—a robust monitoring network that will inform smart
agricultural investment at a time of great intensification by
measuring and integrating essential ecosystem services
into decision-making. Through Vital Signs, a dynamic
network of scientists and policymakers will benefit from
critical data as they figure out how to produce enough
food to feed the world’s growing population without
damaging precious natural resources.
We see it on the world stage in forums like the Summit
for Sustainability in Africa—convened by His Excellency
Ian Khama, president of Botswana, in cooperation with CI
board members Rob Walton and Laurene Powell Jobs—
where the leaders of 10 resource-rich nations committed
to taking nature’s full measure and worth into their
national accounting. Recognizing that healthy ecosystems
underscore sustainable development, these governments
are pledging to follow an economic development path that
considers the value of nature and its services.
And, finally, we see our vision becoming reality with the
creation of the first trust fund to protect the Amazonian
rainforest territories of Brazil’s Kayapó indigenous
peoples. An initial donation of $8 million from CI’s Global
Conservation Fund provided by the Gordon and Betty
Moore Foundation and Brazil’s National Economic and
Social Development Bank with support from the Amazon
Fund will conserve 3 percent of the Amazon while offering
sustainable economic activities for 7,000 people.
More than ever, CI’s mantra—that safeguarding our
future lies in safeguarding our planet—is resonating with
community leaders, captains of industry and heads of
state; these leaders increasingly understand that it is in
their enlightened self-interest to properly value and protect
the gifts of nature that sustain us.
So we embark on the next quarter-century with a
renewed sense of hope and, with your continued support,
confirmation that we are charting a path toward a brighter
future for the planet and the seven billion of us—and
counting—who call it home.
CI | 2011 Annual Report | 5
FINANCIALS
Since our inception in 1987, CI has matured
into a $140 million organization with more than
800 employees in offices spanning 28 countries
across the globe. Funding to protect our precious,
life-giving planet is scarce, and today we spend
every conservation dollar as carefully and
deliberately as we did when we first began on a
shoestring budget of less than $2 million.
CI’s funding model is rather unique within the
nonprofit community. We are not a membership
organization. In contrast to other organizations
of our size, we are supported by a comparatively
small group of dedicated, highly engaged
donors who commit themselves to supporting
high-impact, multi-year programs. This model
allows us to minimize our fundraising costs while
focusing our dollars and efforts on maximizing
programmatic delivery.
Our statement of activities, presented on page 9,
outlines our revenue sources and illustrates how
we invested these resources in fiscal year 2011.
6 | 2011 Annual Report | CI
Donors + Revenue
The mission CI has undertaken is complex, and the solutions that we offer
require ongoing commitment and perseverance.
CI’s donors are our partners in the truest sense of the word. We have been
fortunate to receive transformative grants from donors such as the Gordon
and Betty Moore Foundation; the Walton Family Foundation; the French,
German and Norwegian governments; Disney; and Starbucks Coffee
Company.
Our donors not only provide critical financial support, but also engage with
us in our work and develop their own long-term environmental strategies,
thus greatly leveraging our mutual impact.
In fiscal year 2011, CI received funding from approximately 4,700 individual,
foundation, corporate, government and multilateral donors. For an
organization of our size, this is a relatively small, but highly committed and
engaged donor base.
Although most of our funding comes in the form of large, multi-year restricted
awards, unrestricted funding provides us with the critical flexibility to respond
to urgent needs and opportunities. Unrestricted funding also allows us to
support new programs for which funding has not yet been secured. CI’s
long-term sustainability depends on raising an appropriate balance of both
restricted and unrestricted funding.
In fiscal year 2011, we received several generous grants that allowed us to
realize significant growth in most revenue categories, including $16 million
from the Walton Family Foundation and USAID to launch our Sustainable
Landscapes Partnership. This program will encourage low-carbon, private
sector investments designed to reduce or eliminate deforestation in
Indonesia through innovative, public-private partnerships.
Additionally, we received more than $13 million for forest conservation in
Africa, Asia and South America from the German Ministry of the Environment,
Disney, The Norwegian Agency for Development Cooperation and JPMorgan
Chase Foundation. Other noteworthy grants included $30 million from the
We also reported $1.9 million in grant cancellations and deobligations in
fiscal year 2011, largely due to the fact that several projects were completed
for less than the amount of the grant awarded to us. This was a big change
from fiscal year 2010 when the lingering effects of the global economic
downturn resulted in the early termination of several large, multi-year grants.
Expenditures
We are committed to maintaining the highest standards of stewardship over the
funds entrusted to us by our donors. In fiscal year 2011, 81 percent of every
dollar spent directly supported CI’s programs. Management and operations
accounted for 11 percent of total spending, and development expenditures
accounted for 8 percent of total spending.
Our goal is to ensure that CI has robust systems and infrastructure in place to
effectively manage and support a complex global operation. We also aim to
carefully manage our costs to maximize dollars available for programmatic use.
CI consistently invests the largest portion of our resources in our people and
partners—66 percent in fiscal year 2011. Specifically, 47 percent of our budget
went to support our staff, who are recognized experts in their respective fields
and countries. Grants to partners comprised 19 percent of our expenditures.
Grantmaking represents a cornerstone of CI’s programmatic delivery. At CI, we
believe that the greatest programmatic impacts are achieved by supporting and
building the capacity of local organizations and peoples in managing their own
natural resources.
In fiscal year 2011, several programs implemented during previous years came
to completion. Consequently, we awarded fewer grants to partners in fiscal year
2011 than in fiscal year 2010. This lower rate of grantmaking was the primary
driver in reducing our expenses by $17 million for this period.
Summary
Those who read CI’s financial statements often ask us why our revenue
fluctuates—sometimes dramatically—between years. For example, our revenues
rose by almost $70 million, from $77.8 million in fiscal year 2010 to $147 million
in fiscal year 2011.
The funding CI receives in form of large, multi-year gifts must be reported as
revenue in the year we receive them. As a result, our reported revenue can
fluctuate significantly while our expenses remain more consistent from year
to year. Thus in years that we have received significant new grants that will
be spent during subsequent years, our financial statements may reflect large
surpluses. In later years when these programs are implemented, our statements
may reflect deficits.
Net assets represent the cumulative amount of revenue that we have raised
in excess of our expenditures since our inception. Thus, our net asset
balance is what we have available to invest in conservation in the current and
future years and as such is an important indicator of CI’s financial health and
sustainability. Based on the changes in our net asset balance over the years,
it is clear that CI has enjoyed consistent growth. CI is indeed fortunate to
stand on very sound financial footing with total net assets of $259 million at
the close of fiscal year 2011.
Net Assets
In millions of US dollars
Walton Family Foundation to support our Bird’s Head and Eastern Tropical
Pacific Seascapes programs.
$350
$300
$250
$200
$150
Net Assets
$100
$50
$FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
7
C I | 2 0CI
0 8| 2011
A n nAnnual
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Revenue and Expense Summary
Governments, NGOs
and Mutilaterals 20%
Ecosystem Finance and Markets 18%
Management and
Operations 11%
Individuals 11%
Science
and Knowledge 9%
Corporations 10%
EXPENSES
Revenue
$147.2 Million in FY 2011
$121.6 Million in FY 2011
Investments 4%
Development 8%
Other Income 1%
Center for Conservation
and Government 4%
Field Programs 40%
Global Marine 4%
Communications 4%
Foundations 54%
8 | 2011 Annual Report | CI
Global Initiatives 2%
Statement of Activities* 2010
2011
Unrestricted
Revenue
Grants and contributions
Foundations
Individuals
Corporations
Non-U.S. Government
U.S. Government
NGO/Multilaterals
Cancellations and deobligations
Investment income
Licensing agreements, product
sales and other income
Net assets released from donor
restrictions
Total Revenue
Expenses
Program services
Field Programs
Ecosystem Finance + Markets
Science + Knowledge
Center for Conservation + Government
Global Marine
Communications
Global Initiatives
Total program services
Supporting services
Management and Operations
Development
Total supporting services
Total Expenses
Changes in net assets before non-operating activity
Nonoperating activity
Gain (loss) on foreign currency translation
$6,537
6,624
2,350
12
2,040
Temporarily
Restricted
$72,579
9,878
12,621
13,367
10,203
5,748
(1,941)
3,699
Permanently
Restricted
$51
3
-
Total
Total
$79,167
16,505
14,971
13,367
10,203
5,760
(1,941)
5,739
$25,475
21,803
17,894
9,094
4,205
3,775
(11,559)
5,261
3,471
(83)
-
3,388
1,868
102,062
(102,062)
-
-
-
123,096
24,009
54
147,159
77,816
48,526
21,136
11,371
5,105
5,011
4,611
2,633
98,393
-
-
48,526
21,136
11,371
5,105
5,011
4,611
2,633
98,393
58,012
29,003
11,442
3,924
4,598
5,907
1,481
114,367
-
13,232
9,928
23,160
14,856
9,600
24,456
-
13,232
9,928
23,160
121,553
1,543
24,009
-
2,881
Changes in Net Assets
Net assets at beginning of year
Changes in net assets
$1 ,543
$26,890
17,656
1,543
199,491
26,890
Net Assets at End of Year
$19,199
$226,381
54
121,553
25,606
138,823
(61,007)
2,881
(3,889)
$54
$28,487
($64,896)
13,201
54
230,348
28,487
295,244
(64,896)
$13,255
$258,835
$230,348
-
* For the Fiscal Years Ending June 30, 2011 and 2010, in Thousands
CI | 2011 Annual Report | 9
board
10 | 2011 Annual Report | CI
C I | 2 0 0 8 A n n ua l R e p o rt | 5 1
Board of Directors*
Wes Bush
Chairman of
the Board and Chief
Executive Officer
Paula Hannaway Crown
Peter A. Seligmann
Conservation International
Arlington, Virginia
Chairman of the
Executive Committee
Rob Walton
Chairman of the Board
Wal-Mart Stores, Inc.
Bentonville, Arkansas
Vice Chair
Harrison Ford
Actor
Los Angeles, California
Chairman, Chief Executive Officer
and President
Northrop Grumman Corporation
Falls Church, Virginia
Principal
Henry Crown and Company
Chicago, Illinois
Jared Diamond, Ph.D.
Professor, Geography and Physiology
UCLA
Los Angeles, California
André Esteves
CEO
Banco BTG Pactual S/A
São Paulo, Brazil
Mark L. Feldman
President and Chief Executive Officer
L & L Manufacturing Company
Los Angeles, California
Robert J. Fisher
Board Members
Director
Gap, Inc.
San Francisco, California
Roger Altman
Ann Friedman
Founder and Chairman
Evercore Partners
New York, New York
Henry H. Arnhold
Chairman of the Board
Arnhold & S. Bleichroeder Holdings, Inc
New York, New York
Dr. Alex Balkanski
General Partner
Benchmark Capital
Woodside, California
Skip Brittenham
Senior Partner
Ziffren Brittenham LLP
Los Angeles, California
Teacher
Bethesda, Maryland
Dr. Victor Fung
Chairman
Fung Global Institute
Hong Kong
Jeff Gale
Gale Force Studios
Las Vegas, Nevada
Richard Haass, Ph.D.
President
Council on Foreign Relations
New York, New York
Laurene Powell Jobs
Pavan Sukhdev
Hon. Alexander Karsner
John Swift
Founder and Board Chair
Emerson Collective
Palo Alto, California
CEO and Founder
Manifest Energy, LLC
Washington, DC
President S. K. Ian Khama
CEO, GIST Advisory
Study Leader, TEEB
Gurgaon, Haryana, India
Conservationist
Cayucos, California
Dr. Enki Tan
Republic of Botswana
Gaborone, Botswana
Executive Chairman
GITI Tire Co. Ltd.
Singapore
Heidi Miller
Victoria Tauli-Corpuz
President of International (retired)
JPMorgan Chase
New York, New York
Kris Moore
Conservationist
Los Altos Hills, California
Paul Polman
Chief Executive
Unilever
London, United Kingdom
Stewart A. Resnick
Chairman of the Board
Roll International Corporation
Los Angeles, California
Story Clark Resor
Principal
Conservation Consulting
Wilson, Wyoming
Orin Smith
Executive Director
Tebtebba (Indigenous Peoples’ International
Centre for Policy Research and Education)
Baguio City, Philippines
Ray R. Thurston
Retired CEO
UPS Logistics Group
Jackson, Wyoming
President Anote Tong
Republic of Kiribati
Bairiki, Tarawa
Byron Trott
Chairman and CEO
BDT Capital Partners, LLC
Chicago, Illinois
William Wrigley, Jr.
Wrigley Management Inc.
Chicago, Illinois
*As of December 2012
Chief Executive Officer (retired)
Starbucks Coffee Company
Seattle, Washington
Amb. Thomas
F. Stephenson
Partner
Sequoia Capital
Menlo Park, California
CI | 2011 Annual Report | 11
council
12 | 2011 Annual Report | CI
C I | 2 0 0 8 A n n ua l R e p o rt | 5 1
Chairman’s Council*
Chairperson
Maureen Schafer
Las Vegas, NV
Elizabeth Fisher
San Francisco, CA
Nancy Frisch
Portland, OR
Members
Catherine Adler
New York, NY
Patrice Auld
Seattle, WA
Sybilla Balkanski
Woodside, CA
Kyung Choi Bordes and
Peter Bordes
New York, NY
Carolyn Brody
New York, NY
Thomas Byers
Palo Alto, CA
J. Rodney & Nancy
Chiamulon
Pacific Palisades, CA
Suzie Coleman
Healdsburg, CA
Ann Colley
New York, NY
Alan Dynner
Boston, MA
David Fenton
Jane Gale
Las Vegas, NV
Mary C. Gallo
Modesto, CA
Cori Glaser
Seattle, WA
Howard Gould
New York, NY
Renee Harbers
New York, NY
Jane Hartley
New York, NY
James N. Hauslein
Hobe Sound, FL
Ann-Eve Hazen
Tiburon, CA
Sydney McNiff Johnson
Washington, DC
James Jordan
New York, NY
Jeffrey Lesk
Rosemarie Rotella
Finn Longinotto
Kim Samuel-Johnson
Thomas E. Lovejoy
Pablo Sanchez Navarro
George Meyer and
Maria Semple
Jessica and Richard Sneider
Washington, DC
Washington, DC
McLean, VA
Seattle, WA
Cristina Mittermeier
Nanoose Bay, British Columbia, Canada
Eddy Moretti
New York, NY
Claire Ngo
Singapore
Fabian and Nina Oberfeld
Los Angeles, CA
Trina Overlock
Greenwich, CT
Christopher Redlich
Hillsborough, CA
Toronto, Canada
Mexico City, Mexico
Los Angeles, CA
Wm. Laney Thornton
San Francisco, CA
Mike Velings
Utrecht, The Netherlands
Katie Vogelheim
Tiburon, CA
Bradford Wurtz
Portola Valley, CA
Gillian Wynn
Santa Monica, CA
Darlene Ziebell
Hoffman Estates, IL
*As of December 2012
Sarah Johnson Redlich
Hillsborough, CA
Tyler Kelley
Anders Rhodin and
Carol Conroy
Los Angeles, CA
Lunenburg, MA
Frans Lanting
Nancy Morgan Ritter
Santa Cruz, CA
Kirkland, WA
Los Angeles, CA
New York, NY
CI | 2011 Annual Report | 13
staff
14 | 2011 Annual Report | CI
C I | 2 0 0 8 A n n ua l R e p o rt | 5 1
Senior Leadership*
Chairperson’s Office
Sebastian Troeng, Ph.D.
Senior Vice President
Ecosystem Finance + Markets
Peter A. Seligmann
Jennifer Morris
Chairman of the Board and
Chief Executive Officer
Vic Arrington
Russell A. Mittermeier, Ph.D.
President
Niels Crone
Chief Operating Officer
General Counsel’s Office
Amelia Smith
Executive Vice President
Senior Vice President, Center for
Environmental Leadership in Business
John De Wet
Vice President, Finance and Operations
Patricia Zurita
Vice President, Critical Ecosystem
Partnership Fund
Senior Vice President and General Counsel
Center for Environment + Peace
The Gordon + Betty Moore
Center for Ecosystem
Science + Economics
Martha Stein-Sochas
Greg Stone, Ph.D.
Executive Vice President
Sandy Andelman, Ph.D.
Senior Vice President
Frederick Boltz, Ph.D.
Marketing + Branding
Heather Luca
Acting Managing Director
Development
Development
Cynthia McKee
Senior Vice President
Kraig Butrum
Vice President, Major Gifts
Andrew Wilson
Vice President, Foundation Relations
Field Programs
José Maria Cardoso da Silva, Ph.D.
Executive Vice President
Daniela Raik, Ph.D.
Vice President, Field Program Management
Vice President, Asia Policy and Managing
Director, Japan
Africa + Madagascar Field Division
Jessica Donovan
Senior Vice President
Celia Harvey, Ph.D.
Lilian Spijkerman
Benoit Kisuki
Vice President, Social Policy and Strategic
Engagement
Joy Gaddy
Jean-Philippe Palasi
Senior Vice President
Scott Mills
Vice President, Global Information Technology
Finance
Barbara DiPietro
Chief Financial Officer
Global Marine
Greg Stone, Ph.D.
Executive Vice President
Director, European Policy, Belgium
Executive Director, Guyana
Tatiana Ramos
Executive Director, Mexico
Luis Espinel
Executive Director, Peru
Annette Tjonsiefat
Executive Director, Suriname
Lisa Famolare
Vice President, Strategic Projects, Guyana and
Suriname
Asia-Pacific Field Division
David Emmett
Seng Bunra
William Liao
Vice President and Senior Advisor, Global
Policy
Global Operations
David Singh, Ph.D.
Country Director, Cambodia
Will Turner, Ph.D.
Kristen Walker-Painemilla
Executive Director, Ecuador
Managing Director, Africa and Madagascar Field
Division and Vice President, Madagascar
Carlos Manuel Rodriguez
Vice President, Global Public Partnerships
Luis Suarez
Léon Rajaobelina
Senior Vice President
Vice President, Global Change and Ecosystem
Services
Executive Director, Colombia
Senior Vice President
Senior Vice President, International Policy
Yasushi Hibi
Fabio Arjona
Country Director, Liberia
Country Director, Democratic Republic of Congo
Sarah Frazee
Director and CEO, Conservation South Africa
Americas Field Division
Fabio Scarano, Ph.D.
Vice President, China
Susana Waqainabete-Tuiese
Country Director, Fiji
Ketut Sarjana Putra
Executive Director, Indonesia
Jean-Christophe Lefeuvre
Program Director, New Caledonia
Sue Taei
Senior Director, Pacific Islands Oceanscape
Oliver Coroza
U.S. Government Policy
Senior Vice President
Jill Sigal
Vice President
Regional Director, Eastern Tropical Pacific
Seascape
Enrique Nunez
News + Publicity
Eduardo Forno
*As of December 2012
Kim McCabe
Vice President
Scott Henderson
Terrestrial Program, Philippines
Marine Program, Philippines
Executive Director, Bolivia
André Loubet Guimaraes, Ph.D.
Executive Director, Brazil
CI | 2011 Annual Report | 15
join us
CI is protecting life on Earth every day,
because humanity depends on nature. We
invite you to join us. Visit our Web site at
www.conservation.org, and click on “Act”
to sign up for our eNewsletter and take
action to help conserve our planet. You can
also make a donation to CI. Every gift counts.
Go to www.conservation.org/give or
contact us at:
Conservation International
Development Department
2011 Crystal Drive, Suite 500
Arlington, VA 22202
800.406.2306
16 | 2011 Annual Report | CI
Photo Credits
(left to right, top to bottom)
Cover
© Benjamin Drummond
Inside Cover
© Jeff Yonover
Contents
© Benjamin Drummond
© CI/photo by Biao Yang
© Robin Moore
© William Crosse
© Trond Larsen
© Keith A. Ellenbogen
Page 10
© Jeff Yonover
Page 12
© Keith Ellenbogen
Page 14
© Trond Larsen
Back Inside Cover
© Luciano Candisani/iLCP
Back Cover
© Keren Su/gettyimages.com
CI’s Annual Report and Annual Report Supplement are published for supporters of
Conservation International. A U.S.-based, international organization, CI is a
nonprofit, tax-exempt corporation under Section 501(c)(3) of the
Internal Revenue Code. All contributions are tax deductible to
the full extent of the law.
© 2011 Conservation International
impact
people need nature to thrive
printed with
Conservation International
2011 Crystal Drive, Suite 500
Arlington, VA 22202 USA
800.406.2306
www.conservation.org